Central banks affect the money supply in their own countries. They also supervise commercial banks. Households gain from these commercial banks in a number of ways. In recent years, commercial banks have adopted new technology. Global online banking rose by 14% between 2019 and 2022. These technological improvements were accompanied by greater use of division of labour.
(a)[2]
Identify two differences between central banks and commercial banks.
(b)[4]
Explain two characteristics of coins that allow them to perform the functions of money.
(c)[6]
Analyse the services commercial banks provide to households.
(d)[8]
Discuss whether division of labour will benefit workers or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Central bank: part of the public sector / owned by the government” …